KEY POINTS
- Diamond Standard is already in talks with some retailers in the Philippines, Thailand, Vietnam and Hong Kong
- CARATS are a legal commodity, which means service providers don't need to secure money transfer licenses
- The CARATS can be offered in various locations such as grocery markets, pawnshops, and even regular storefronts
Diamond Standard Co., the developer of the world's "only regulated and market-traded natural diamond commodities" called CARATS, announced today that it is expanding to Asia and seeks agent locations across the region to establish a global remittance network that can rival money transfer networks in the region.
CARATS are commodity currencies that aren't subject to the same restrictions or foreign exchange fees as digital currencies or electronic money. The commodities were recently listed on crypto exchange Bitrue. Due to their regulated nature, CARATS are a great solution for companies offering money transfer services that often face challenges in regulatory compliance.
Diamond Standard CARATS can be sent using SMS messages on any mobile phone – the quickest and most convenient way to send value across countries.
"Diamond Standard CARATS allows anyone to send value using their phone, nearly anywhere, in the form of an electronic title to a fungible, market-traded diamond commodity. This unique approach means that Diamond Standard CARATS can be used for a fraction of the cost of money transfer," Cormac Kinney, founder and CEO of Diamond Standard, told International Business Times. He added that once the network is expanded in Asia, it will be the easiest way for people to send value, with much lower fees than Wise, MoneyGram, PayPal and Western Union.
"We see Diamond Standard CARATS being especially important in regions where money transfer can be difficult because of lack of banking, or political or economic instability. CARATS can become a stable local currency," he noted.
The company is already in talks with existing money transfer agent locations and retailers across some of the largest unbanked populations in the region, including the Philippines, Vietnam, and Thailand. Discussions are also ongoing with retailers in Hong Kong.
CARATS can be used across a wide range of service providers where remittances are allowed such as grocery markets, pawnshops, convenience stores, money exchanges and other storefronts looking to earn from fees in international remittances.
It is worth noting that no money transmitter license is required in the process since customers will only purchase CARATS – a legal commodity – using local currency or any accepted payment cards. The CARATS are then delivered instantly to the customer's mobile phone either through an SMS message or a QR code. These commodities can then be sent across the world through SMS and the recipient can use them for purchases. If the recipient wants to, the CARATS can also be sold to a local agent in exchange for local currency.
CARATS use public blockchains and they trade on crypto exchanges. However, they aren't developed by a sponsor or an algorithm. "They are issued by, and redeemable for, individual physical commodities," the company noted.
Diamond Standard CARATS are held by Brink's in the U.S. and Malca Amit in Hong Kong. "One Carat is the title to 1/5000th of a Diamond Standard Coin (current spot = $4,300)," the company told IBT. A Bar is equal to ten Coins, so each Bar is equal to 50,000 CARATS.
Diamond Standard is paving the way for a revolution in global remittance – the reserve is autonomous so anyone can deposit or withdraw commodities without the need for a sponsor's permission.
CARATS are NOT cryptocurrencies, nor money. They are usable for value transfers or payments in social networks such as Elon Musk's X. They can also be used across global gaming platforms – all without licensing requirements.
For countries like the Philippines and others across Asia where consumers are in search of alternatives for faster and no-hassle remittances, Diamond Standard CARATS promise a revolution in the remittance sector that service providers can consider as an additional offering.
In a region with many unbanked consumers are hungry for legal, speedy cross-border money transfers, CARATS are a beacon of hope that could light the way for an accessible and efficient financial future.
